Can I run payroll in Germany without a local entity?

Yes. Through an Employer of Record (EOR), Gracemark employs your talent under Germany labor law and runs local payroll, no entity required.

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Payroll in Germany

Payroll in Germany runs in EUR (Euro). Monthly payroll is near-universal market practice; there is no single statutory mandated cycle. No general statutory 13th-month salary; Weihnachtsgeld is common but contractual or collective-agreement driven. Statutory employer contributions apply. Gracemark operates it end-to-end, humans, not tickets.

Get a Germany payroll quote Paying an existing team there? Tell us the headcount, email or phone is enough.

Currency

EUR, Euro

Payroll cycle

Monthly payroll is near-universal market practice; there is no single statutory mandated cycle

Working week

The Working Time Act sets an 8-hour standard day, extendable to 10 hours if averaged back to 8 over six months; overtime premiums are set by collective agreement or contract rather than federal statute

Minimum wage

The statutory minimum wage is EUR 13.90 per hour effective 1 January 2026, applying nationwide with no regional variation

13th-month

No general statutory 13th-month salary; Weihnachtsgeld is common but contractual or collective-agreement driven

Employer cost

Employers pay roughly half of social insurance: pension 18.6%, unemployment 2.6%, health at the 14.6% general rate plus a fund supplement and long-term care insurance, so the employer share is typically around 20% to 22% of gross salary

Probation

A probationary period of up to 6 months is common, during which statutory notice under section 622 BGB is 2 weeks

Notice period

Notice under section 622 BGB scales with service from 4 weeks up to 7 months; dismissal protection applies after 6 months in businesses with more than 10 employees, and there is no general statutory severance outside redundancy, social plans or court settlements

Two ways to run payroll in Germany

Own-entity payroll

For long-term presence in Germany. Gracemark manages statutory filings, pay runs, and year-end reporting under your entity, with a named operator on Western Europe time.

EOR-run payroll

No entity in Germany? Employ and pay talent under Gracemark's local infrastructure via EOR, onboard in 2 weeks (eor), no local incorporation.

Compliance essentials in Germany

Strict termination protection (Kündigungsschutz) after 6 months / 10+ staff
Works councils (Betriebsrat) have real co-determination power
Employer pays 6 weeks of full sick pay before state takes over
Customary 13th-month and 24–30 days leave to stay competitive
Strong scrutiny of false self-employment (Scheinselbständigkeit)

Get a payroll quote for Germany

Send your headcount and salary band. We reply with employer burden, net-to-gross, and setup timeline, no sales scripts.

Get your Germany hiring plan

Send the role, a selected worker or an existing-team requirement in Germany. Get a written recommendation covering the model, cost categories, responsibilities and next steps. One hire is welcome; no meeting required.

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Deeper guide

Hiring guide: Germany →

Employ without entity

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